I will reward you today
(As of 12/16/2024 ET)
- 52 week range
- $18.16
▼
$70.27
- Price target
- $68.70
SMTEC Company Nasdaq: SMTC Manufactures analog and mixed signal chips that enable advanced high-speed optical and sensor data transmission and communications solutions. Its products are used in consumer electronics, infrastructure, industrial applications, data centers and Internet of Things (IoT) systems. The company’s turnaround is impressive as its revenues have returned to growth since the fiscal first quarter of 2025, with its latest third-quarter revenues up 18% year-over-year. The Computer and Technology Sector Company supplies its products to Apple Inc Nasdaq: Apple, Amazon.com Inc Nasdaq: AMZN, Qualcomm company Nasdaq: Qcom and Intel Corporation NASDAQ:INTEC.
Semtech is benefiting from strong demand for AI, data center and IoT applications, driving its transformation despite intense competition from the likes of Texas Instruments Corporation Nasdaq: TXN, Broadcom Company Nasdaq:AFGO and Microchip Technology Company Nasdaq: MCHP.
The turnaround is underway as Semtech returns to growth in the third quarter
Semtech’s revenue has been on a steady rise since bottoming out in Q1 2025, down 13% year over year, followed by the fiscal second quarter, where it improved to down 10% year over year. Q3 was a turnaround quarter as revenues turned positive, growing 18% YoY, while Q4 estimates point to 30% YoY growth. FQ3 earnings per share beat consensus estimates by 3 cents, to 23 cents. Its revenue rose 18% year-over-year and 10% sequentially to $236.8 million, well ahead of consensus estimates of $232.89 million. Data center revenues rose 78% year-over-year and 58% sequentially to a record $43.1 million. Non-GAAP gross margin increased 200 basis points to 52.4%. Non-GAAP operating margin increased 410 basis points to 18.3%.
Distribution of revenues by end market and sector
The majority of FQ3 revenue, or 53% of $131 million, is derived from the industrial end market, which includes IoT, industrial RF, circuit protection, and long range (Lo-Ra) enabled solutions. The infrastructure end market generated revenue of 28%, or $65.8 million, representing data center revenue and CopperEdge shipments used in 1.6T active copper cables.
The high-end consumer products market generated 17% of total revenue, or $40 million. These revenues include consumer circuit protection and PerSe proximity sensing solutions. The analog mixed signal systems, wireless, IoT and communications segments generated 35% of revenue each, and signal integrity achieved 30% in Q3 2025.
Semtech guides higher FQ4 top and bottom forecasts
Semtech stock forecast today
$68.70
0.63% upModerate purchase
Based on 12 analyst ratings
| High expectations | $85.00 |
|---|---|
| Average expectations | $68.70 |
| Low expectations | $50.00 |
Semtech stock forecast details
The company released earnings per share rising from 29 cents to 35 cents for the fiscal fourth quarter of 2025 versus consensus estimates of 27 cents. Semtech expects revenue of $245 million to $255 million versus consensus estimate of $242.03 million. Non-GAAP gross margin is expected to range between 52.3% and 53.3% and non-GAAP operating margin is expected to range between 19% and 20.4%.
Semtech CEO Hong Ho was upbeat, commenting: “We are very pleased to report broad-based growth in each of our end markets, especially in the data center, where we expect demand for AI-driven products to be a long-term growth.” Scale and Transformational Growth Engine for Semtech Our results confirm that our customers and target markets are turning to us and highlight the effectiveness of our initiatives to drive market share gains and expand SAM.
SMTC is trying to break through the bull flag
The bull flag pattern consists of two parts. First, the underlying stock forms a flagpole, which is a sharp rise in the price of a stock, usually at an angle of 45 degrees or higher. The flagpole is complete when the arrow forms its peak. The flag is formed on parallel downtrend lines consisting of lower highs and lower lows. A bull flag is triggered when a stock rises through the upper downtrend line and crosses the peak of the flagpole.
SMTC rose on a gap to $70.27 on Q3 2025 earnings release to complete the flagpole. Parallel downtrend lines formed a flag, which bottomed at $61.40. A bull flag attempt led to a breakout through the $64.99 level, but 0.618 Fib resistance at $68.68 capped its bounce. SMTC will need to break above the flagpole top at $70.27 to complete the bull flag breakout. Fixed daily VWAP is slowly rising at $61.13. The daily RSI is flat at the 64 range. Fibonacci (Pullback support levels (Fibonacci) are located at $62.39, $57.61, $53.64, and $50.61.
The average consensus target price for SMTC is $68.70Which means an increase of 5.45% The analyst’s highest price target is at $85.00. Ten analysts have rated the stock a buy, while two have assigned a hold rating. The stock has a short interest of 9.71%.
Actionable options strategies: Bullish investors could consider using cash-secured puts at Fibonacci retracement support levels to buy the dip in SMTC. If the stock is allocated, writing covered calls at rising Fibonacci levels implements the Wheel for Income strategy.
Before you consider Semtech, you’ll want to hear this.
MarketBeat tracks the highest-rated and best-performing research analysts on Wall Street and the stocks they recommend to their clients on a daily basis. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches up… and Semtech wasn’t on the list.
While Semtech currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
As the AI market heats up, investors with a vision for AI have the potential to see real returns. Learn about the industry as a whole plus seven companies getting work done using the power of AI.
